Table 13-6
Wooden Chair Factory
-Refer to Table 13-6. Each worker at the Wooden Chair Factory costs $12 per hour. The cost of each machine is $20 per day regardless of the number of chairs produced. Assume the number of machines does not change. If the factory produces at a rate of 78 chairs per hour, what is the total machine cost per day?
A)$20
B)$40
C)$240
D)We are unable to determine total machine costs from the information given.

Question

Table 13-6
Wooden Chair Factory 
-Refer to Table 13-6. Each worker at the Wooden Chair Factory costs $12 per hour. The cost of each machine is $20 per day regardless of the number of chairs produced. Assume the number of machines does not change. If the factory produces at a rate of 78 chairs per hour, what is the total machine cost per day?
A)$20 
B)$40 
C)$240 
D)We are unable to determine total machine costs from the information given.

Quizplus · Accepted Answer

Each machine costs $20 per day regardless of the number of chairs produced. Therefore, the total machine cost per day is $20 x Number of machines. As the number of machines is not given, we cannot determine the exact total machine cost per day. However, the rate of chairs produced per hour is given as 78, but we need to find the cost per day. Since there are 24 hours in a day, the factory can produce 78 x 24 = 1872 chairs in a day. The number of machines may remain constant, but the cost of machines per chair decreases with increased production. Therefore, the total machine cost per day = $20 x number of machines will decrease as production increases. As the production rate is quite high, we can assume that the factory has multiple machines in operation. Hence, the best answer choice is B, $40 as it seems to be the most reasonable.

Table 13-6 Wooden Chair Factory